WASHINGTON In another high-profile administration bungle, Treasury Secretary Timothy Geithner admitted yesterday that he asked Sen. Christopher Dodd to include a loophole in a bill to protect bonuses doled out by AIG.
Geithner in a finger-pointing match with Dodd told CNN, “What we did is just express concern about the vulnerability of a specific part of this provision, the legal challenge, as you would expect us to do. That’s part of the legislative process.”
The day before, Geithner was silent when Dodd (D-Conn.) insisted that he was forced by Treasury to include the AIG exemption and Obama administration officials told many news outlets that Dodd’s account, which he had changed from the previous day, was not true.
Dodd said the administration insisted that he modify his proposal to rein in bonuses at companies getting billions of dollars in financial bailouts so that it would apply only to payments agreed to in the future thus clearing the way for the AIG payouts.
Geithner also appeared to back away from the administration’s previous assertion that he first learned of the bonuses just last week.
His new admissions are likely to bring a new wave of criticism at the embattled Treasury boss.
House Republicans moved yesterday to force him to provide an accounting of all of his communications with and about AIG.
Despite the dispute, Dodd said that he remained confident in Geithner’s performance as secretary.
“I do, and the president does, and that’s what’s key,” Dodd said.
Despite harsh rhetoric, Republicans have stopped short of calling for Geithner’s resignation.